Add training workflow, datasets, and runbook

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+Understanding and Managing Leverage    • 173
+matter if a significant chunk of your portfolio is exposed to those returns!
+Lambda is a good measure to show how sensitive percentage returns are to 
+a move in the stock price, but it is useless when trying to understand what 
+the portfolio effects of those returns will be on an absolute basis.
+Notional Exposure
+Look back at the preceding table. Let’s say that we wanted to make 
+lambda more useful in understanding portfolio effects by seeing how 
+many contracts we would need to buy to match the absolute return of 
+the underlying stock. Because our expected dollar return of one of the 
+$39-strike calls only makes up about a third of the absolute return of the 
+straight stock investment ($3.82 / $11.75 = 32.5% ≈ 1/3), it follows that if 
+we wanted to make the same dollar return by investing in these call options 
+that we expect to make by buying the shares, we would have to buy three 
+of the call options for every share we wanted to buy. Recalling that op-
+tions are transacted in contract sizes of 100 shares, we know that if we were 
+willing to buy 100 shares of Oracle’s stock, we would have to buy options 
+implying control over 300 shares to generate the same absolute profit for 
+our portfolio.
+I call this implied control figure notional exposure. Continuing with 
+the $39-strike example, we can see that the measure of our leverage on the 
+basis of notional exposure is 3:1. The value of the notional exposure is cal-
+culated by multiplying it by the strike; in this case, the notional exposure 
+of 300 shares multiplied by the strike price of $39 gives a notional value 
+for the contracts of $11,700. This value is called the notional amount of the 
+option position. 
+Some people calculate a leverage figure by dividing the notional amount 
+by the total cost of the options. In our example, we would pay $18 per con-
+tract for three contracts, so leverage measured in this way would work out to 
+be 217 (= $11,700 ÷ $54). I actually do not believe this last measure of lever-
+age to be very helpful, but notional control will become important when we 
+talk about the leverage of short-call spreads later in this chapter.
+These simple methods of measuring leverage have their place in ana-
+lyzing option investment strategies, but in order to really master leverage, 
+you must understand leverage in the context of portfolio management.